Solana continues to stay under pressure amid the
negative macro backdrop as the geopolitical situation remains unchanged, with stalled
US-Iran negotiations and the ongoing Saudi-Houthi conflict. Oil prices are back
above $100, the Federal Reserve faces mounting inflation pressures that could
force it to raise rates more than expected, and growth concerns are starting to
take centre stage. That’s a bad mix for the crypto market.
On the fundamental side, Solana continues to see
growth in tokenized equities, stablecoins and institutional adoption. However,
these developments are clouded by the broader macro-driven selling.
The main Solana-specific event this week is the
Alpenglow consensus upgrade, scheduled for tomorrow. The upgrade aims to reduce
transaction finality to around 150 milliseconds by replacing the existing
consensus mechanism.
Beyond that, the most important event for the
broader crypto market will likely be Friday’s US Flash PMIs, barring a
surprising breakthrough in US-Iran negotiations.
If the data disappoints, growth concerns could
intensify and trigger another selloff in SOL. Better than expected data, on the
other hand, might spark a short-term relief rally, but it wouldn’t change the
bigger picture, as stronger activity alongside persistent inflation pressures would
just reinforce the need for Fed tightening.
SOLANA TECHNICAL ANALYSIS – DAILY TIMEFRAME
level. If the price gets there, we can expect
the buyers to step in, with a defined risk below the support, to position for a
rally into the 148.00 level. The sellers, on the other hand, will want to see
the price breaking lower to increase the bearish bets into the major upward
trendline next.
SOLANA TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME
On the 4 hour chart, the price broke above the downward
trendline that was defining the bearish structure. This might be a signal of a
loss in the bearish momentum and a potential pullback into the 113.00 level. If
the price gets there, we can expect the sellers to step in, with a defined risk
above the 113.00 level, to position for a drop into the 97.00 level. The
buyers, on the other hand, will look for a break higher to increase the bullish
bets into the 148.00 level next.
SOLANA TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, we
have a minor downward trendline defining the current bearish price action. The sellers
will likely continue to lean on the trendline, with a defined risk above it, to
keep pushing into the 97.00 support. The buyers, on the other hand, will look
for a break higher to pile in for a rally into the 113.00 level next. The red
lines define the average daily range for today.
UPCOMING CATALYSTS
On Thursday we get the latest US Jobless Claims figures, while on
Friday we conclude the week with the US Flash PMIs.
This article was written by Giuseppe Dellamotta at investinglive.com.